VZCZCXRO7192
RR RUEHCHI RUEHCN RUEHDT RUEHGH RUEHHM RUEHNH RUEHVC
DE RUEHGP #1637/01 2470836
ZNY CCCCC ZZH
R 040836Z SEP 07
FM AMEMBASSY SINGAPORE
TO RUEHC/SECSTATE WASHDC 3922
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHOO/CHINA POSTS COLLECTIVE
RUEHBY/AMEMBASSY CANBERRA 1955
RUEHNE/AMEMBASSY NEW DELHI 1816
RUEHUL/AMEMBASSY SEOUL 4079
RUEHKO/AMEMBASSY TOKYO 5674
RUEHWL/AMEMBASSY WELLINGTON 1345

C O N F I D E N T I A L SECTION 01 OF 02 SINGAPORE 001637 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 09/04/2017 
TAGS: PREL PGOV ECON PTER ETRD EFIN SN
SUBJECT: ASEAN CHARTER ON TRACK, SINGAPORE MFA TELLS EAP 
DAS MARCIEL 
 
REF: SINGAPORE 1591 
 
Classified By: Ambassador Patricia L. Herbold for reasons 1.4(b)(d) 
 
¶1. (C) Summary: The ASEAN Charter should be ready for 
leaders to sign at the group's November Summit in 
Singapore, MFA Second Permanent Secretary Bilahari 
Kausikan told EAP DAS Scot Marciel and the Ambassador 
August 25.  Kausikan offered a downbeat assessment of 
developments in Indonesia, Malaysia, and Thailand.  In 
a separate meeting, academics told DAS Marciel it 
appeared the United States was disinterested in the region, 
but the United States could still do much to promote growth 
and stability.  Ministry of Trade and Industry (MTI) Deputy 
Secretary NG How Yue expressed his concerns regarding the 
 
SIPDIS 
practical implications of the United States, 100 percent 
scanning legislation.  He noted that ASEAN was making good 
progress in its free trade agreement talks with other 
countries in the region.  End Summary. 
 
¶2. (U) Visiting Singapore on August 25, EAP Deputy 
Assistant Secretary Scot Marciel met with MFA Second 
Permanent Secretary Bilahari Kausikan and MTI Deputy 
Secretary Ng How Yue.  He met separately with financial 
 
SIPDIS 
analysts based in Singapore and participated in a 
roundtable discussion with academics and economists at 
the Rajaratnam School of International Studies (RSIS). 
 
ASEAN Charter Nearing Completion 
-------------------------------- 
 
¶3. (C) MFA Second Permanent Secretary Bilahari Kausikan 
told DAS Marciel and the Ambassador that ASEAN was making 
steady progress on completing the Charter and it should be 
ready for the leaders to sign at the November Summit in 
Singapore.  Out of necessity, the Charter will be a 
"compromise," but will include a "Review Clause" to ensure 
that the Charter will be a dynamic document that can 
accommodate change.  A key unresolved issue still 
being debated was how much power would be granted to the 
ASEAN Secretariat. 
 
¶4. (C) Turning to internal developments in other ASEAN 
countries, Kausikan commented that Indonesia was not doing 
well economically.  Despite its stronger macroeconomic 
performance, job growth was poor.  The central government 
faced many difficulties in implementing its policies due to 
the devolution of authority to the regional governments. 
He also voiced concern over Indonesia's plans to construct 
a nuclear power plant directly on a fault line.  Kausikan 
worried that Malaysia was suffering from poor economic and 
political trends, including a trend toward pronounced 
"Islamization," which was increasing ethnic tension.  In 
Thailand, the new constitution seemed designed to bring in 
a weak government that would be unable to implement the 
policies needed to deliver strong economic growth. 
 
¶5. (C) DAS Marciel and Kausikan also held a discussion on 
Singapore's involvement in Provincial Reconstruction Teams 
(PRTs) in Afghanistan, reported reftel. 
 
Perceptions of U.S. Disengagement 
--------------------------------- 
 
¶6. (SBU) Academics from the Rajaratnam School of 
International Studies (RSIS) expressed their dismay over 
what they characterized as an apparent lack of U.S. 
interest in Southeast Asia.  They noted that there were two 
important factors at work that fed this perception: the 
rise of other major powers in the region such as China and 
U.S. distraction by events in the Middle East, particularly 
the situation in Iraq.  The United States was still well 
respected in the region; it should remain actively involved 
and could do much to strengthen ASEAN countries 
economically, they argued.  In particular, the United 
States should provide more support for education in the 
poorer ASEAN countries to help foster economic growth and 
stability. DAS Marciel responded that the USG remained 
intensively engaged in the region, both bilaterally and, 
increasingly, with ASEAN as an institution.  He briefed the 
academics on the U.S.-ASEAN Enhanced Partnership and on 
strengthened bilateral relations with most ASEAN member 
states. 
 
¶7. (SBU) The academics also spoke of a belief by some in 
 
SINGAPORE 00001637  002 OF 002 
 
 
the region that the United States was seeking to downplay 
the role of religion in society -- especially Islam -- in 
an attempt to combat religious extremism.  DAS Marciel 
explained that the USG has engaged in many public diplomacy 
programs to show that religion can flourish in a 
pluralistic society.  The academics maintained that the 
public diplomacy message of the United States was not 
reaching its target audience. 
 
100-Percent Cargo Scanning, ASEAN Integration 
--------------------------------------------- -- 
 
¶8. (SBU) MTI Deputy Secretary Ng How Yue expressed his 
concerns regarding the practical implications of future 
screening of 100 percent of all cargo bound for the United 
States under recently passed legislation.  Referencing his 
Customs background, DepSec Ng observed that it would impose 
significant logistical problems as Singapore moved from 
inspecting two to three percent of containers to 100 
percent.  However, he said Singapore would work with the 
United States and suggested a detailed plan of action for 
Customs agents might be necessary before the program could 
be implemented efficiently. 
 
¶9. (U) DAS Marciel stressed that the United States welcomed 
and encouraged the development of a strong ASEAN.  Ng 
responded that the GOS believed ASEAN integration was in 
Singapore's strategic interest.  He added that negotiations 
on ASEAN's myriad free trade agreements with other 
countries in the region were progressing well. 
 
¶10. (U) According to DepSec Ng, the United States should 
expect a greater focus from ASEAN on environmental issues 
such as deforestation and energy efficiency. There was a 
firm belief that technology could bring better solutions to 
energy security, along with conservation and an increased 
reliance on renewable energy sources.  With its advanced 
technology, the United States would be a valued partner for 
the region. 
 
Crisis in U.S. Markets Did Not Spill Over to Asia 
--------------------------------------------- ---- 
 
¶11. (U) DAS Marciel queried Singapore-based regional 
financial analysts about the impact of the recent sub-prime 
lending crisis in the United States on the region.  The 
consensus was that the impact was limited for two reasons: 
the limited direct exposure of regional economies to the 
U.S. sub-prime market; and the offset by the still-strong 
China and India markets.  However, Southeast Asian 
economies were likely to show strain if the United States 
were to go into a recession. 
 
¶12. (U) DAS Marciel cleared this message. 
 
Visit Embassy Singapore's Classified website: 
http://www.state.sgov.gov/p/eap/singapore/ind ex.cfm 
HERBOLD